A project sponsor requested earned value data on two concurrent projects from the project managers. Both projects are regarded as equally important and strategically beneficial and have been finished by over 80%. He received the following information:

Project A: PV: $1,800,000 EV: $2,300,000 AC: $2,100,000

Project B: PV: $2,000,000 EV: $1,500,000 AC: $1,600,000

The sponsor considers to shift some resources from project A to project B to speed up the second project which is currently behind schedule.

What is the most likely outcome of such a measure?

A : Changing team assignments during late course of a project typically increases cost efficiency.

B : Changing team assignments during late course of a project typically increases time efficiency.

C : According to the law of diminishing returns, the consolidated cost variance of the two projects will decrease.

D: According to the law of diminishing returns, the consolidated cost variance of the two projects will increase. ‹ collapse